Ifos, cg - does return u/s 139(1) is required to be filed in below scenario?

she does not require to file ITR

if senior citizen gross total income exceeds rs 300000 then he/she have to file ITR

Hi Sumit, if we include the exempt income (LTCG from shares where STT paid and Dividend income) then gross total income is more than Rs 300000, else it is less than that. So question is whether exempt income included for computation of Gross Total income as this will decide whether ITR is due or not. Reference of an section / case law would help too. thanks,

Hi Yogesh,

Thanks for the response. Seems you mean that exempt income is not needed to be included for computation of GTI. Would appreciate if you can provide any link / reference to the said IT section or case law. thanks

Hi abhi
As per sec 139 of income tax act 1961 Your gross total income (before allowing any deductions under section 80C to 80U) exceeds Rs. 2.5 lakhs in the FY 2017-18. This limit is Rs 3 lakh for senior citizens (aged above 60 but less than 80) or Rs 5 lakhs for super senior citizens (aged above 80)

And GTI includes LTCG and STCG.

Also GTI is computed before giving any deduction or exemption from Total income

Originally posted by : Sumit Sarswat
	Hi abhiAs per sec 139 of income tax act 1961 Your gross total income (before allowing any deductions under section 80C to 80U) exceeds Rs. 2.5 lakhs in the FY 2017-18. This limit is Rs 3 lakh for senior citizens (aged above 60 but less than 80) or Rs 5 lakhs for super senior citizens (aged above 80)And GTI includes LTCG and STCG.Also GTI is computed before giving any deduction or exemption from Total income

Hmmm.. in ITR 2, Part B , section TI , Row 9 (Gross Total Income) is showing the amount excluding the exempt income (LTCG, dividends).

But, section TTI, Row 9 d add Rs 1000 as fee for default u/s 234F.

I did more analysis of the ITR 2 excel utility.. and it seems it considers ltcg (which is exempt) for computing the Rs 300000 limit BUT not the dividend amount (which is also exempted). I found that by reducing the capital gain exempt amount and increasing the divided amount in the utility to just test it out..

So it seems, Gross total income considers LTCG (even if exempted) but not dividend income (which is also exempted).

The exact numbers are as follows :

IFOS - Rs 159033

LTCG (STT paid) - Rs 160235

Dividend on shares - Rs 31464.

Assesee - 62 yr old lady.

Thoughts.

 

 

 

 

Sec 139 clearly mention every individual whose gross total income exceeds 2.5L / 3L /5L ,as the case may be, including capital gain (before giving exemption for CG only) and being giving any exemption u/s 80 ,then he/she have to file ITR .

Exemption for dividend can be taken for calculating such income , ONLY CG exemption not be considered.

In above scenario u have to file your itr for F.Y. 17-18 as per said by sumit sir read section 139 of income tax act 1961 carefully